Imagine a catering business which serves 500 meals a day. One day, they seize an opportunity to grow their business. They automate 90% of the cooking process, and with the same number of employees in the kitchen, they can now prepare 2000 meals a day. A huge 4-times gain in the productivity of human effort!
However, there is another side to this productivity gain. Look at it from the resource perspective – it now requires 4 times more resources to keep the same number of people employed. This is a classic example of how automation is increasing the “Resource Intensity” […]
Full Post at www.goodreads.com